New methodology in effect as of January 1, 2015
Effective January 1, 2015, a new Lagged CPI Adjustment Methodology was implemented based on actual CPI.
The following table provides the CPI-Based Price-Adjustment factors for 2015. These factors were based on the actual rate of CPI inflation of 2.9% in 2011, 1.5% in 2012, and 0.9% in 2013.
CPI-Based Price-Adjustment factors for 2015
| Benchmark Year |
2012 |
2013 |
2014 |
| Price-Adjustment Factor |
1.055 |
1.025 |
1.009 |
Based on these factors, one can derive: (1) a maximum allowable cumulative price increase between 2012 and 2015 of 5.5% for patented drug products with Canadian sales in 2012; (2) a maximum allowable cumulative price increase between 2013 and 2015 of 2.5% for patented drug products with Canadian sales in 2013; and (3) a maximum allowable cumulative price increase between 2014 and 2015 of 0.9% for patented drug products with Canadian sales in 2014.
The year-over-year price increase cap for the 12-month period ending December 2015 is 1.4% (=1.5 x Actual Inflation in 2013).
Note: In a previous website update the 2016 CPI-Based Price-Adjustment Factors were incorrectly labelled as the 2015 CPI-Based Price-Adjustment Factors.